Use This Information to Answer the Following Question

question 32

Multiple Choice

Use this information to answer the following question. If the income statement were prepared in a multistep form, gross margin from sales would be

• A) $75,750.
• B) $72,000.
• C) $67,000.
• D) $82,000.

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Definitions:

Cover

In contract law, a purchaser's action to buy goods similar to those the seller failed to deliver, in an effort to mitigate damages from the breach of contract.

Cancel

The act of terminating or voiding a contract, agreement, or obligation, rendering it ineffective or null.

Delivery

The act of transferring something from one party to another, often referring to goods, but can also apply to the delivery of services or legal documents.

Liquidated Damages

Pre-determined damages agreed upon by parties in a contract, to be paid if one party breaches the contract.